Attorney General Andrew Cuomo has secured a six-figure award against an Arizona-based company accused of swindling New York residents while promising to help them resolve their debts.

Nationwide Asset Services Inc. first came under scrutiny when Cuomo filed suit in May alleging that nearly 2,000 New Yorkers were promised a 25-to-40 percent reduction in their debts after paying the company to negotiate with creditors on their behalf. In the end, the AG says, only one-third of one percent of those who signed on with Nationwide actually saw such reductions.

State Supreme Court Judge Hon. Patrick NeMoyer last week ordered the company to pay $198,100 and barred it from conducting business in the state until it files a $500,000 performance bond to protect consumers.

In a statement announcing the decision, Cuomo said many consumers who sought assistance with their debt were given false promises, and ended up in worse shape after dealing with NAS.

Buffalo bankruptcy lawyer Robert Radel says it's a problem he's seeing more of.

"What we are finding is that there are a whole bunch of other companies that are just Internet scam companies making wild promises that they can reduce your debt by 50 percent, and it doesn't happen," he said.

Relating the case of a client who came to his office to file for bankruptcy protection after making $3,200 in payments to a debt-settlement agency that never paid the creditors, Radel said there can be risk involved in approaching debt counselors without a trusted referral.

Calls to Nationwide Asset Services Inc. seeking comment were not returned. The company's Web site presents a sample scenario in which the company might help a client to shave off seven years and more than $40,000 in paying off a $20,000 debt.